‘DESPITE the low office vacancy rate in the Melbourne CBD, economic uncertainty, particularly fears about Europe, is stymying demand for new space, according to real estate agents.’

‘Savills Australia’s divisional director office leasing, Phillip Cullity, said the Melbourne CBD’s continuing low office vacancy rate – 5.3 per cent compared with the national average of 7.9 per cent – provided a basis for genuine optimism this year.’

‘ ”Yes, the uncertainty in Europe has led to cautious decision making,” he said, but Europe was now less important to Australia than Asia, particularly China and India.’

‘Jones Lang LaSalle’s head of leasing in Victoria, Stuart Colquhoun, said that, with supply at historically low levels and future supply quantified, the missing piece in the Melbourne office puzzle remained demand.’